Since Greece's financial crisis erupted in 2009, imposed austerity diktats
incrementally transferred its wealth, assets and enterprises to Western
interests at the expense of a 25% GDP drop, mass impoverishment and unemployment
(60% for youths), elimination of vital public services, and a brain drain
of its best and brightest.

Greece is effectively bankrupt. Without bailout help, it's unable to pay
its bureaucrats and keep its economy from collapsing. At the same time,
accepting greater debt peonage on Troika terms assures an endless downward
cycle to oblivion.

Tsipras announced a July 5 national referendum to allow Greeks to decide
up or down whether to accept or reject their demands.

"We exhausted every limit of concessions so there could be an agreement,"
said Tsipras. "Perhaps some saw that as a weakness. The day of truth is
coming for the creditors, the time when they will see that Greece will
not surrender, that Greece is not a game that has ended."

He called on all Greeks to reject the Troika "ultimatum" with a "resounding
NO." Based on his 80% approval rating, he'll likely get it. Then what?

BBC correspondent Robert Peston close to talks said "(t)he European Central
Bank is expected to end emergency lending to Greece's banks on Sunday."

"The country's banks depend on the ECB's Emergency Liquidity Assistance
(ELA). Its governing council is meeting later."

Greece will likely "announce a bank holiday on Monday, pending the introduction
of capital controls."

"Austrian Finance Minister Hans Jorg Schelling said a Grexit now "appears
almost inevitable."

Two years ago, Cyprus declared a bank holiday and instituted capital controls
short-term to deal with its banking crisis. Supplies of basic goods dried
up instantly because importers had no cash to pay for them. Months later,
things still hadn't returned to normal.

Cutting off Greece's financial lifeline would cause greater duress than
what Cyprus experienced. Yet relief is available by turning East, not
West.

Russia and China are likely suppliers. Perhaps other BRICS countries.
Staying trapped in the Eurozone straightjacket assures deepening debt
peonage - an endless cycle of financial and social disaster for ordinary
Greek people already suffering hugely.

On Sunday, ECB board member Lorenzo Bini Smaghi said "(g)iven the uncertainty
over Greece remaining in the euro, the ECB will no longer be able to supply
liquidity to the Greek banks, who in turn will be unable to supply euros
to their clients."

ECB governors are meeting Sunday to decide whether to end ELA. A two-thirds
governing council majority is needed to approve it.

Irish Finance Minister Michael Noonan expects a Monday bank holiday announcement.
"It is not a question of waiting to see what might happen…in terms of
a crisis. The crisis has commenced," he said.

For now, things are in unchartered waters. An ECB statement said it "tried
to avoid taking any steps that would push Greece out of the eurozone."

"But the bank’s rules would make it more difficult for it to continue
to support Greek banks without the prospect of an agreement with creditors."

Troika officials are amenable to more talks without offering meaningful
concessions. Whether Grexit looms remains to be seen.

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled "Flashpoint in Ukraine:
US Drive for Hegemony Risks WW III."

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

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